The impact of the IFRS 9 expected loss approach on accounting conservatism

• Main Authors: GOH, Clarence, LIM, Chu Yeong, OW Yong, Kevin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: IFRS 9; expected loss model; loan loss provisions; accounting conservatism; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1941; https://ink.library.smu.edu.sg/context/soa_research/article/2968/viewcontent/GohLimYong2021_pvoa.pdf
• Institution: Singapore Management University

Using an experimental setting, this paper examines the impact of the International Financial Reporting Standard (IFRS 9) expected credit loss (ECL) approach on accounting conservatism. The ECL approach enables banks to incorporate loan loss provisions (LLP) on a timelier basis and help bank regulato...